DoD Awards $13.7M for Taxiway Repair at NSA Souda Bay, Greece
Contract Overview
Contract Amount: $13,756,869 ($13.8M)
Contractor: Tsontos, Michael M., S.A.
Awarding Agency: Department of Defense
Start Date: 2008-09-26
End Date: 2012-06-01
Contract Duration: 1,344 days
Daily Burn Rate: $10.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: REPAIR LOOP TAXIWAY; NSA SOUDA BAY, CRETE - GREECE
Plain-Language Summary
Department of Defense obligated $13.8 million to TSONTOS, MICHAEL M., S.A. for work described as: REPAIR LOOP TAXIWAY; NSA SOUDA BAY, CRETE - GREECE Key points: 1. Contract awarded for critical infrastructure repair at a key overseas naval base. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 1344 days indicates a long-term project. 4. No small business participation was noted in this award.
Value Assessment
Rating: fair
The award amount of $13.7 million for taxiway repair appears substantial. Benchmarking against similar overseas infrastructure projects would be necessary to definitively assess value, as specific cost drivers for remote locations can vary significantly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The existence of multiple bids (no=2) suggests some level of price discovery, though the final price relative to market rates is not immediately clear.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure maintenance at a U.S. military installation abroad. The competitive nature of the award aims to ensure reasonable pricing for the services rendered.
Public Impact
Ensures operational readiness of aircraft at NSA Souda Bay. Supports U.S. military presence and operations in the Mediterranean region. Potential for disruption during repair phases, though mitigated by project planning.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Limited visibility into specific cost breakdowns for remote location work.
Positive Signals
- Awarded under full and open competition.
- Addresses critical infrastructure needs.
Sector Analysis
This contract falls under the Highway, Street, and Bridge Construction sector. Spending in this sector by the Department of Defense is often driven by the need to maintain and upgrade infrastructure at domestic and overseas installations.
Small Business Impact
The award data indicates that no small business concerns were involved in this contract. This suggests that the prime contractor is likely a large business, and opportunities for subcontracting to small businesses were either not pursued or not identified.
Oversight & Accountability
Standard DoD procurement oversight processes would apply. The use of full and open competition is a positive indicator of adherence to procurement regulations aimed at achieving fair and reasonable prices.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- No small business participation.
- Limited transparency on cost breakdown for overseas work.
- Potential for cost overruns on long-duration project.
- Geopolitical risks associated with the location.
Tags
highway-street-and-bridge-construction, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.8 million to TSONTOS, MICHAEL M., S.A.. REPAIR LOOP TAXIWAY; NSA SOUDA BAY, CRETE - GREECE
Who is the contractor on this award?
The obligated recipient is TSONTOS, MICHAEL M., S.A..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $13.8 million.
What is the period of performance?
Start: 2008-09-26. End: 2012-06-01.
What specific factors contributed to the $13.7 million cost for taxiway repair, considering the location?
The significant cost is likely influenced by factors inherent to overseas construction, such as logistics, material transport, specialized labor, and compliance with local regulations in Greece. Additionally, the scope of work, including potential subsurface issues or specific structural requirements for the taxiway, would heavily impact the final price. Detailed project specifications and contractor bids would provide further clarity.
What are the potential risks associated with a long-duration (1344 days) construction contract for taxiway repair?
Long-duration projects carry risks such as cost escalation due to inflation or unforeseen material price increases, potential for contractor performance degradation over time, and the possibility of scope creep if additional issues are discovered. Weather delays and geopolitical factors in the region could also impact the schedule. Robust contract management and contingency planning are crucial to mitigate these risks.
How effectively does full and open competition ensure value for money in overseas infrastructure projects like this?
Full and open competition is designed to maximize the number of potential bidders, thereby fostering price competition and increasing the likelihood of obtaining a fair and reasonable price. However, the effectiveness in overseas projects can be moderated by the limited pool of qualified contractors willing or able to undertake work in specific remote locations. Due diligence on the bids received is still essential to confirm true value.
Industry Classification
NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N3319108R0217
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1, EF.POLEMISTON STREET, HANIA
Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $13,756,869
Exercised Options: $13,756,869
Current Obligation: $13,756,869
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-09-26
Current End Date: 2012-06-01
Potential End Date: 2012-06-01 00:00:00
Last Modified: 2011-10-27
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